Apple has consistently 'captured' the earnings to be announced by moving to a PE range of 14-15 inclusive of the earnings to be announced the week before the announcement.
Apple today 7/11/12 is trading at 603 with trailing earnings of 41. Earnings are to be announced July 24 with median estimated earnings of 12 for the quarter. Inclusive of the new earnings the trailing earnings will be 45.22 At a PE of 14 Apple should move to near 630 next week.
Buy the July 21 605 call and sell the July 21 610 call for a net debit of ~2.2 If you want to be less aggressive also buy the July 21 595 put and sell the July 21 590 put for a net debit of ~1.6 The less aggressive trade is the one recommended at this time. It has a potential return of 20% in a week.
Options are for the experienced investor. They may lose all value at time of expiration. They must be aggressively managed. For updates on how to manage this trade and additional Apple earnings capture strategies email us at email@example.com